Pru profits up in first quarter

Prudential's first quarter results have shown a 29 per growith in profit from new business

One of Stirling’s biggest employers has posted a strong start to the year.

Prudential’s first quarter results were revealed on Thursday with a 29 per cent growth in profit from new business.

A total of 1375 workers, half of Prudential’s UK workforce, are based at their Craigforth site, near Stirling. The company runs its personnel, financial planning and marketing from there, and 1000 Capita workers also are based at the site.

Tidjane Thiam, group chief executive, said: “Our businesses continue to perform well and have made a strong start to 2014, with group new business profit up 29 per cent in the first quarter.

“In Asia, new business profit increased by 20 per cent on constant exchange rates, demonstrating the continued strength of our diversified platform and underpinned by the positive long-term fundamentals in the region.

“In the US, we remain focused on managing our business for value, writing new business at highly attractive economics.

“Jackson’s new business profit was up 67 per cent on constant exchange rates, reflecting the benefit of product and pricing actions, higher sales volumes and the positive impact of higher long-term yields year-on-year.

“In the UK, new business profit increased by 90 per cent during the first quarter of 2014, driven by three bulk annuity transactions, which more than offset a lower contribution from retail business, where overall sales levels continue to be impacted primarily by retirement deferrals.

“Prudential is committed to working closely with the UK Government and regulators following the announcements made in the first quarter, to ensure that the new savings and investment system that emerges results in appropriate outcomes for British savers, who have been impacted negatively by a long period of exceptionally low interest rates.”

Shares rallied by 2.4 per cent following the announcement, extending the stock’s gain this year to 5.3 percent.